MYEG – Bullish
Technically, this stock continues its bullish trend in 2024 from retracement in 2023 and came back to retracement and close at 0.915. Price remains in a bullish channel and stays above Kijun Sen level, which can be considered a healthy bullish trend at this moment.
Fundamentally, based on recent reports: –
Innovative Services and Blockchain Adoption:
MYEG expects to continue introducing innovative services by leveraging new technologies, specifically blockchain or Web 3.0. This forward-thinking approach aims to drive organic growth for the current financial year.
In the second quarter of 2024, MYEG’s net profit surged to RM165.42 million, up from RM111.56 million in the previous corresponding period. Revenue also grew significantly to RM242.28 million from RM184.88 million a year earlier.
Contributions from services provided by MYEG’s Zetrix blockchain platform, such as ZCert and Digital ID registration and transactions, played a significant role in this growth. Additionally, the sale of Zetrix tokens further boosted their financial performance.
Contract Extension with JPJ:
The Road Transport Department (JPJ) extended the service contracts of MYEG and its wholly-owned unit, MY EG Sdn Bhd (MYEGSB), for three years. These extended contracts will run from May 23, 2023, to May 22, 2026.
Historical Context:
MYEG, originally MY E.G. Services Sdn Bhd, changed its status to a public limited company and assumed its present name, MY E.G. Services Berhad, in conjunction with its listing on the MESDAQ Market. Later, in 2009, it successfully completed its transfer listing to the Main Board of Bursa Malaysia Securities Berhad.
MYEG’s commitment to innovation, blockchain adoption, and sustained financial growth positions it as a dynamic player in the Malaysian business landscape. Keep an eye on their developments.